Southern Specialties, headquartered in Pompano Beach, FL, has built a strong reputation in the asparagus business, which puts it in a good place for growth when U.S. buyers are looking for additional supplies or a new supplier.

Consequently, Carlos Solf, director of procurement for the firm, anticipates a 5 percent increase in volume of Peruvian asparagus shipped to the United States for the firm this year. He said that overall imported volume from Peru should be very similar to last year, though he said that depends on several factors including demand by the local processors for product for IQF facilities and canning plants.

If the processor price climbs, there would be less product available for export. On the other hand, a soft processor market means more growers will send their spears to the fresh market.

Solf said that Southern Specialties imports from Peru 52 weeks of the year, even during times when Mexican supplies are heavy. While he has forecasted a fairly typical 2014 and expects Peru to continue to be a major supplier of fresh asparagus in the near future, he did note some challenges.

He said that there are always growers looking to maximize returns by switching crops. The top crops that are often considered as alternatives are grapes, citrus, berries and avocados. Growers are constantly making the calculation to determine if they should switch or not. This creates pressure on U.S. importers to constantly be looking for new suppliers.

Another factor rearing its head this year is a USDA proposal to add a user fee onto fumigation costs. The current proposal calls for a fee of $375 per trailer or chamber.

“If that occurs, that increase will have to be reflected in the cost of the product and I am not sure the market can absorb that,” he said.

It is no secret that asparagus sales in the United States are given a huge boost when the market is low and the retail price dips under $3 per pound. If increased fumigation costs change the pricing dynamic, it’s hard to predict how U.S. consumers will respond.

Solf said another challenge is the competition for air freight space. Exports of all items to South America have been flat, so there is no big movement to increase flights and freight space coming from that continent. As various products fight for that air freight space, the cost will go up, which again will be difficult to absorb.

“At Southern Specialties we work hard to lock up air freights costs as a service to our customers,” said Charlie Eagle, vice president of business development. “We rely heavily on air freight and only use ship when there is very heavy demand for air space for flowers from South America.”

A change in the cost dynamic for air freight could affect Peruvian asparagus shipments.

Southern Specialties operates a processing facility in Pompano Beach where it creates many different packs for its customers. Topping that list are steam bags for spears as well as separate packs for asparagus tenders and tips.

“We are finding growth across the board for the value-added items,” said Eagle.